Final answer:
False postretirement benefit plans are generally not funded. Instead, defined contribution plans like 401(k)s and 403(b)s are used for retirement, where the employer and employee contribute to a retirement account that is invested and offers tax-deferred benefits.
Step-by-step explanation:
False postretirement benefit plans including healthcare are generally not funded. Fortunately, pensions and other defined benefits retirement plans are increasingly rare, replaced instead by "defined contribution" plans, such as 401(k)s and 403(b)s. In these plans, the employer contributes a fixed amount to the worker's retirement account on a regular basis (usually every pay check). The employee often contributes as well. The worker invests these funds in a wide range of investment vehicles. These plans are tax deferred, and they are portable so that if the individual takes a job with a different employer, their 401(k) comes with them. To the extent that the investments made generate real rates of return, retirees do not suffer from the inflation costs of traditional pensioners.